An increase in the inflation rate will lead to a ________ nominal interest rate, which will ________ the debt-to-GDP ratio

A) higher; raise
B) higher; reduce
C) lower; raise
D) lower; reduce

A

Economics

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Procyclical policy:

What will be an ideal response?

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When the price level increases, people demand ________ money and the demand for money curve ________

A) less; shifts rightward B) more; shifts leftward C) less; shifts leftward D) the same amount of; does not shift E) more; shifts rightward

Economics